The central years of century xix was for the United States a period of great economic development. The definitive push came from construction of railway lines that cubkan long distances, and that provided fast communicationses between the states the federation. Pero just conquered prosperity it worsened the deep economic and social differences between the northern states and those of the South. The governments of North industrialist was determined those in favor of protectionism and of maintenance of tariffs, with the purpose of to promote the development, whereas the agrarian states ofSouth pressed in favor of free change, with object to favor his exports. The definitive rupture between both parts caused the project to abolish the slavery, promoted by the states of North and rejected by those ofSouth, which they based on the enslaved work the culture of the cotton and the tobacco, activities of vital importance for its economy. After the election like president of Abraham Lincoin, anti-slavery republican and, happened in 1860, the eleven states of the South separated, forming the Confederados States of America, with capital in Richmond. The conflict, already larvado, exploded the 12 of April of 1861 with the attack of the confederado army to Fort Sumter, in Carolina of the South, that was into the hands of the federals.

the green tickets

The civil war immediately made clear the urgency of a massive financing of the warlike companies. The North, convinced that the South would not resist long time, thought to be able to resist with loans and, possibly, a limited increase of the fiscality. As it happens almost always, the war of Secession triggered a race towards the tesaurización of goods, insurances, in metal individual precious, reason why shortly time the gold disappeared of the circulation. In order to replace its lack, the Congress ordered to emit 150 million of dollars in form of new called tickets green backs, by the green color of his reverso, the values were of 5, 10, 20, 50, 1 00, 500 and 1. 000 dollars; they did not give interests and they could be reimbursed after certain time, or be turned state obligations to 6% of interest. In 1863, the convertibility of green backs was revoked to proposal of secretary of Treasure, Salmon Portiand Chase, one of protagonists of the financial vicissitudes of the civil war (its picture appears in the 10, 000 dollars of 1934, still in course, although rarely used like payment means). That was not a happy decision, and the own Chase, in view of the gradual depreciation of they green backs in relation to the gold, that was object of traffic in the black market, had to adopt a series of measures with which, to to prohibit the foreign currency and yellow metal transactions, in fact restored the unavoidable course of green backs. Not even these drastic decisions had the waited for effects, because the public interpreted them like an official confirmation of his own one distrust towards new tickets. Next to they green backs, also called legal to tend you notice, that is tickets of legal course, circulated demand you notice, bills of 5, 1 0 and 20 dollars emitted by initiative of Chase, and that could change by gold if therefore it were asked for. They took in the obverse a letter that it indicated in what filial of Treasure of the United States could take place this change: , to, it meant grace period in New York, b ” in Filadelfia, c in Boston, d, in Cincinnati and e, Saint Louis. Twelve months had not passed from the beginning of the hostilities, and gold already he had returned very little: the Treasury could not reimburse demand you notice, reason why in May of 1862 they were retired. They were green them backs, that was absolutely insufficient for the exigencies of the economy. In February of 1863, by initiative of Chase, the Congress it approved the National Bank Act. This law favored the birth in the diverse states of banks authorized to emit tickets: five were enough partners and a capital of 50, 000 dollars, of which it was only precise to disburse half. The law was a discreet successful: the National Banks of the different states they began to emit tickets, calls regional, that helped the state finances but they created problems unforeseen expenses. These tickets, that immediately became an essential part of the circulating one, were not accepted in all the states, that often they considered currency foreign, In addition, the regional ticket emission left without solving the problem of the depreciation of green them backs, in any case considered like the main currency of the Union. It did not spend long time without it was shown necessity to emit a national unitary currency, in substitution of the premises. This one had been affected by the introduction of call , tax of death “, that was to pay each bank and that reached 1 0% of its emissions. It does not surprise that this measurement caused in brief time the aim of regional paper money. Also it persecuted to establish a net distinction between the commercial banks and those of emission. Only the Congress had to have to be able of emission and control of the currency.

fractional Currency and seals

The depreciation of dollar of paper had also caused the shortage of fractional currencies of silver, necessary for the transactions small, and that was exported to the Canada and the countries of Latin America. In these places, given the lack of circulating metalist of low value, the currencies of silver of the United States were accepted willingly in exchange for gold currencies, which were changed as well legally in stock-market of New York or the black market. The remedies to surpass the absence of this type of circulating were very ingenious. Despite the prohibitions, in some territories it was replaced by

the sudistas currencies

In the confederados territories the situation was worse. The states lacked own metallic currency, but the tickets proliferated of local banks. These emissions were limited, and in just a short time the high circulating mass gave rise to one serious inflation. By the others, it agrees to consider that the confederadas authorities did not have many other possibilities of financing the expenses military, every time greater, since the income by tariffs were practically null because of the blockade to the exports imposed by the North, and fiscal system was insufficient. Great part of tickets was not of good invoice, and the false ones abounded. They green back @ ofNorth, introduced of contraband, contri~ they buían to the confusion, because they were accepted legally in the territories of the Confederation. With time, he himself sudista government had of to decree the legality of its circulation. In the last years of the war, many soldiers imposed, like condition to remain faithful to sudista army, to receive the nordistas ticket payment. The confederados tickets, calls warrants, on to war bonds and, more generically, you notice, were convertible in merchandize. Which? That was mystery. Some tickets included like clause of their validity for conve sión the company/signature of La Paz. Is evident then, that reigned one true monetary anarquí. The subjects of tickets sudista are predominantly the military. To it accustoms appear personages of mythology grieg in the bill of 5 dollars of 1863 form and Florida, appears the goddess Currency. In 186 concluded the war, the tickets that circulated in the Confederation was destitutes of their value.


Leave a Reply

Your email address will not be published. Required fields are marked *

1 + five =

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Post Navigation